The impact of six sigma on operational efficiency

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Abstract

Globalisation of markets has brought about enormous challenges and
opportunities for business organisations. The prevailing business environment
propels organisations to improve and create value in order to remain
competitive. Improvement and value creation begin internally and get reflected
externally in the form of value added propositions to the market. Six Sigma is
a methodology known for creating value within organisations, in all industries,
through process improvement which translates into enormous savings for the
organisation. Six Sigma is widely used globally and it has been in existence
for many years, yet it is not so prevalent in the South African business
environment. This research explores the principles and approach adopted,
which distinguish the Six Sigma methodology from other improvement
programs. In the manufacturing industry, operational efficiencies are essential
to enhance value creation and profitability.
The study begins by discussing the origin, history and evolvement of Six
Sigma into a methodology recognisable and espoused by leading world class
organisations. The technique used to effect Six Sigma is entrenched and
enforced by adherence to stipulated basic principles, breakthrough strategy
and Six Sigma tools in identification and elimination of variation. The study
later models some of Six Sigma tools by application on the operational entity
in verification and testing of theoretical knowledge into practical knowledge
that can be exploited for process improvement consequently enhancing
operational efficiencies. The impact of Six Sigma on operational efficiencies
underlie on the ability to positively change process effectiveness and
capability to near perfection as expressed by defect rate of not more than 3.4
defects per million opportunities.